ARB Opposed to Raising Capital Adequacy Requirement to 8.0%

Published: 13 November 2005 y., Sunday

The Association of Russian Banks (ARB) is categorically opposed to raising the capital adequacy requirements of banks to 8.0%, said ARB president Garegin Tosunyan.

The Central Bank may cancel the license of banks with the capital adequacy rate below that figure. At present, the CBR cancels licenses if the rate is below 2.0%. The requirement may be raised by 1.0% every year. A steeper rise will cause nervousness at the financial market and lead to problems, Tosunyan said.

Šaltinis: Banki.ru
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